THE UNCONVENTIONAL ROUTE

One way to save money when buying is to choose an unconventional route. Traditional loan processes are sometimes difficult. A buyer can save much more if borrowing through government-backed mortgages such as the Rural Guaranteed Housing Loan, VA Mortgage and FHA loan.

These loans offer attractive deals for almost everyone. The VA loan, however caters only to Veterans and active duty service members. The VA loan and Rural Housing loan offer no money down options, low interest rates, low monthly payments and 100% financing. The FHA loan has a low down payment requirement, flexible mortgage plans and competitive rates.

People looking to move to an area such as Corvallis, Oregon, for low to middle income would best benefit from the rural housing loan, or USDA home loan.

THE USDA HOME LOAN

As I reported earlier on, Corvallis is less prone to natural disasters (funny after the recent flooding). That on top of the numerous benefits of the USDA loan will have a borrower’s bank account happier.

Benefits of the USDA loan include:

• No money down

• 102% financing (includes the guarantee fee)

• No cash reserves required

• Lenient Credit standards

• Use gifted funds toward the loan

• Lower utility bills due to more sustainable housing

• Repair and renovate a home with USDA funds

• Borrow more money to turn house into an energy sustainable household

• Covers all types of shelter not being used for money production including chicken coops, hobby garden sheds, detached garages and more

• Fixed Interest Rates for 30 years

• Detailed Appraisal to Ensure Safety and Soundness of the Home

• Zip codes eligible in Corvallis, OR: 97330, 97333

• Some areas within the 97331 and 97339 zip codes also eligible

HOW TO BEGIN THE PROCESS

First things first--review your credit score and history. Check the three credit bureaus. Keep in mind that a lender will want a score of 620 or more with a good history of paying on time. You must be able to afford the monthly mortgage.

Second, apply for loan through a USDA approved financing company or lender.

Third, make sure you meet income eligibility limits for your area. Applicants are allowed to have up to 115 percent median income for the area.

Last, but not least, choose a home in the eligible area! Remember, eligible homes will most likely be located in rural or suburban communities with a population of 25,000 or less.

If you’re interested in buying a home in the Corvallis OR area, start searching for your home in the above-mentioned zip codes. Myself and your lender can help with process. Jasmine Reese is a rural housing loan expert for USDA loans.com, a company devoted to rural and suburban development.

For the New Year, why not make a resolve to save money?

Here are a few things to consider:

1) Building equity with your monthly payments is a no-brainer rather than just flushing your rent down the toilet, but worth it?  Read on...

2) Building relationships with neighbors is easier when people stay at least 3-5 years instead of the revolving door aspect of rental areas.  Also ownership neighborhoods have yards, walking trails, clubhouses, community pools, etc. where it is easier to meet and greet one another

3) Life is more predictable and safe when you know what you will be paying year after year for your monthly housing, whereas landlords will keep increasing rents or you move and there is uncertainty as to next years' costs for housing.

4) You can build your nest the way you want and personalize your home! Paint, wallpaper, drill holes outside, fix the landscaping--put you into your pad!

5) Homes are on the cheap right now and interest rates make it crazy easy to get more house and pay less each month with 4% interest rates instead of 6%!

Do it!!

BUY NOW... at least explore the option.  Don't be saying later "I should have..."

A:  We are finding ourselves more busy than usual at this time of year. Pending sales are up from previous years at this time in most price ranges. It seems to be a very late season for real estate market activity which may relate to higher OSU rental rates, lower unemployment in Benton County, awareness of low interest rates, and the fact that many people are using tax refund checks coming now for down payments.  Call for more info, or if you are thinking of selling and think you might have missed the boat.  You haven't!  541-766-0262.

Relocations are common for military families, but once a vet decides to settle down, VA loans are there to help.  Benefits such as no down payment and great interest rates ease the financial stressors of financing a home.

The first step to a VA Loan is filling out a Certificate of Eligibility (COE), which assures that the VA borrower is eligible.  The form is available from the VA website or from a VA-certified lender.  Once they receive the form, the VA may take several weeks to process a COE, whereas VA-certified lenders often employ automated COE systems that process them in minutes

Active duty military, veterans, and spouses of members that were not dishonorably discharged, may be eligible for the VA program.  The following members qualify: 1) Members of the military who, while on active duty, served 90 days during wartime of 181 days during peacetime;  2) Reservists and National Guard members who served at least 6 years; 3) Spouses of service members who died in the line of duty or due to an injury related to service

The financial advantages to the VA home loan program make it a popular home-financing option.  Among the many currently using the VA loan program, there is almost unanimous consent about the program's best feature: no required down payment.  Qualified borrowers can finance up to $417,000 in OR without paying a dime down.  Seldom do VA borrowers spend anything on a down, but when they do, it is generally not more than 5%.  Other financial benefits include:   *Low interest rates, due to the VA backing up to 25% of each loan

      *No Private Mortgage Ins.

      *No prepayment penalties

      *Capped interest rates for active duty service members

Although it may seem impossible, it is in fact easier to qualify for a VA Loan than a conventional loan.  About 80% of those who qualified for a VA loan did not qualify for a conventional, in large part due to more lenient credit and financial requirements.

For more information on OR VA loans and finding the home of your dreams, contact a VA-certified lender or a veterans benefits advocate, such as Matt Polsky, who blogs for VA Benefit Blog, a blog focused on providing service members the most current news and information on the VA benefits they have earned trough serving our country.  Go to: matt@vabenefitblog.com

Very comforting indeed with so much going on out there!

We are blessed to be in such a great real estate market here in Corvallis too in compared with so many places across the US.  I've dealt with several multiple offer situations lately showing our market to be relatively strong.

In our area, demand for housing has risen as the rental rates have gone up due to increased OSU enrollment.  This has caused the scales to tip in favor of buying as well.  In our case, the cost of rents has risen to a degree that it is more attractive to buy, despite the fact that our prices have not dropped as dramatically as in other areas.

We never really know until it is over. You can risk waiting until prices start going up or consider these comparisons of average prices from 1989 (22 yrs ago) to today:

Bread  0.67    Now $2.49

Gas     0.97     Now $340

Cars  15,800   Now $28,700

For homes in the interest rates of 12%'s compared to today's 5.2%, the mortgage payments are nearly the same even though we have seen a huge rise in prices since then (even considering our most recent decline)

Now is the time to enjoy the highest affordability for homes in Corvallis area in a long time!!!

Consider this option if you are working on a remodel this year.  Our local area of Corvallis, Albany, Lebanon and Philomath has two Re-Stores to recycle. It is a very smart move toward energy conservation and a more resourceful mentality.

Bigger is not necessarily better.  Fewer are opting for McMansions and feel they now have permission to go smaller and avoid Jumbo Loans.  More importantly, they want to stay in their homes indefinitely and age in place.  If remodels are necessary to achieve this, they will more likely go this route than before where they moved into a more suitable home.  Single story homes are gaining in popularity as well as two masters on the main as couples endeavor to gain more of their own space.

Flexible space is popular so that as needs change the house need not change as well.  Extra rooms, spaces and basements are examples of flex spaces as well as outdoor spaces great for living and entertaining.

Green is good.  They don't necessarily all feel passionate about going green, but rather want to be good citizens

The recession and uncertainties in housing will likely continue to drive choices.  It is evident now though, that people do not see their homes as liquid an investment as in the past, which drives conscientious Realtors to encourage them to not buy unless they plan to stay for at least 4-5 years.  

We are proud to announce that we raised nearly $3,000 for Community Outreach---$2875 at this counting.  We appreciate the great participation of the whole town in coming by and supporting both our business and this most worthwhile non-profit.  We are humbled by your generosity.  Thanks to all the businesses that contributed to the effort by supplying items for the silent auction.

Come by and have a look if you missed the gala.  You are always welcome.

Avoiding future foreclosure by selling due to fear of job loss soon was the impetus for another couple and now things have settled down at work, so they have pulled their home off.  Many stories such as these make the numbers of for sale signs disappear as fast as campaign signs from lawns all over.

One local home stager says that she has taken the furniture out of four homes these past few days and the homes had not sold as everyone intended. 

Less for sale, means there may be more homes beoming available for rental -easing that squeeze a bit.  It may not be the wisest choice if prices continue to fall as some predict for the next couple of years.  Always a gamble.  With deterioration of the home due to renters on top of deterioration of value, it could be the perfect storm. 

For the best return, replace entry door sets (with steel) for a 129% recoup at sale

Windows are next best values.

Other high ranking changes for cost vs value are siding, attic bedroom conversions and deck additions

The lowest returns for cost right now are home-office conversions, sunroom additions and additions of upscale garages, upscale master suites and upscale bathrooms .